Wall Street wrapped up another successful week in the stock market, holding onto modest gains and reaching new record highs. The technology sector continued to be the driving force behind the market’s rally, contributing to a mostly solid week of earnings. The S&P 500 index achieved another record high, marking its sixth winning week in the last seven.
On Friday, the S&P 500 rose by 1.77 points, or less than 0.1 percent, reaching 5,088.80. The Dow Jones Industrial Average also saw a gain of 62.42 points, or 0.2 percent, ending at 39,131.53. However, the Nasdaq slipped by 44.80 points, or 0.3 percent, closing at 15,996.82. The weakness in some technology companies, such as Apple and Nvidia, weighed down the market on Friday.
Travel-related companies also experienced a pullback, affecting gains in other sectors. Booking.com tumbled by 10.1 percent after issuing a lukewarm forecast, which spooked investors. Competitor Expedia Group also fell by 2 percent. Despite these setbacks, the overall sentiment among investors remained positive, with political uncertainty and elevated valuations unable to dent the market’s momentum.
Earnings reports continued to be the focus for investors. Live Nation, a ticket seller and concert promoter, rose by 2 percent after surpassing analysts’ revenue forecasts. Sleep Number, a company that sells beds and bedding products, surged by 33 percent after beating Wall Street’s revenue forecasts. However, Warner Bros. Discovery fell by 9.9 percent after reporting a larger loss than expected.
Energy stocks faced downward pressure as oil and natural gas prices declined. U.S. crude oil prices slumped by 2.7 percent, while natural gas prices fell by 7.4 percent. Treasury yields also slipped, with the 10-year Treasury yield dropping to 4.26 percent.
Global markets were mostly higher, with Europe and Asia experiencing gains. Tokyo’s markets were closed for a holiday following a surge to an all-time high the previous day.
Looking ahead, investors have more big earnings reports to review in the coming week to gain a better sense of the economy’s direction. Companies such as Lowe’s, Dollar Tree, HP, and Best Buy will release their results. Analysts expect companies in the S&P 500 to report earnings growth of just under 4 percent for the fourth quarter, with 90 percent of companies in the index already reporting. The current quarter is forecasted to have earnings growth of 3.6 percent.
Additionally, Wall Street will receive more economic data that could provide further clarity on consumer sentiment and inflation. The Conference Board will release its consumer confidence survey for February, and the government will provide an update on gross domestic product during the fourth quarter. The focus will be on inflation data from the government’s January report on personal consumption and expenditures, which is expected to cool to 2.4 percent. The Federal Reserve has been working to bring inflation back to its target of 2 percent, and recent data on consumer and wholesale prices exceeded expectations. This has led traders to anticipate the Fed cutting rates in June instead of March.
Overall, despite some setbacks from individual companies and sectors, Wall Street maintained its positive momentum, achieving another successful week in the stock market. Investors eagerly await upcoming earnings reports and economic data to gain insights into the economy’s trajectory and inflationary pressures.
By Damian J. Troise
